Module Three - Improving Engagement

In this module, we’ll cover the final phase of the Hooked Model, investments. The goal of the investment phase is to bring customers back into and through another Hook cycle, further cementing a habit. To know for sure whether habits are taking hold, teams must continuously test their products. In the second lesson of this module, we’ll cover a method for analyzing a project’s habit-forming impact.

Improving Engagement

Let's cover the final phase of the hooked model, investments.

Hooked Model: investments

Small actions the users take to improve the products use and improve the users chance of coming back and using it again

Twitter keeps you coming back by following more people and more people follow you Spotify keeps improving your playlist and keeps you coming back for more

These impcrease frequency of use and increase perceived utility.

The Ikea Effect

WE are more likely to like a product the more time and effort we invest into it. Reasons why?

• Reciprocity: When we feel like someone has done us a favor we want to pay it back
• We invest in relationships to make them better; we do the same with products for that reason.

Building investments

1. Storing Value: The products and services we use are getting better the more we use them for the first time ever.

• The more content you upload, the better it becomes. Dropbox a. content b. Skill Acquisition - The more valuable a drive becomes the more the user knows how to use it c. Data - The more data you have the more valuable it becomes. Mint, Bottomless Coffee d. Reputation - store in the form of views or scores. Can take to the bank. Air BnB, Ebay e. Followers - More valuable the more followers you have f. credit - Storing perks or benefits in a the form of a card. Frequent flyers

2. Loading the next trigger: allowing customers own behavior to bring them back with their own behavior. The more rounds the customer takes through the model, the more likely they will be hooked.

• Don't ask for everything at once - ask for little bits each pass through. Figma

Key Takeaways

1. Create long-term benefits that will bring customers back over time.

• Social media gets better with mach use

2. Investments play a key role in building associations, including investments.

• Can't have a good product just by giving users what they want. Need customers to make it better with each use in the investment phase.

Investments: Figma

Focuses on collaboration to speed up workflows like GitHub Share create and collaborate in one place.

Annual Recurring Revenue - Figma 2020: $75 Million 2021:$128 Million

1. Loading the next trigger: Every user generated piece of content makes the tool more useful to designers
2. SKill Investment - While it is very accessible, it as also filled with ways to upgrade your skills

• Lessons and tutorials on website

3. Collect and utilize data - Uses customer support tickets to make the tool better - created FigJam during the pandemic

Key learnings

1. The purpose of investments is to load the next trigger
2. Focus on small and regular investments
3. Different strategies are necessary to encourage spread across groups